There is still a lot of confusion among consumers about whether writing ‘See ID” on the back of a credit card is a smart move. I can certainly understand why, since there are a lot of conflicting opinions and information available on the web.
It’s tough to prove that this practice will actually prevent identity theft, but I find it hard to believe it hurts. However, as far as Visa and Mastercard are concerned, a credit card is technically not valid unless it is signed. Merchants are even instructed to not accept credit cards without signatures. I’ve personally never had this happen, but I’ve heard of certain businesses that are strict about not accepting cards with ‘See ID’ written on the signature line. The U.S. Postal Service is likely the most common culprit.
Most people have been following this practice for years because it basically makes them feel better. That’s why I do it. Why not? It does sound logical in theory. If your credit card were to fall into the hands of a thief who wanted to use it to make a purchase, the merchant should look at the back of the card and then require proof of identification before processing the transaction. Of course, that’s how it should work in theory. In reality, I can count on my toes the amount of times a merchant has even looked at my credit card over the past several months. The implementation of technology that allows consumers to swipe their own cards has become quite common at most retail locations as well. Walk into a Home Depot, Safeway, or visit the local gas station, and you don’t even have to interact with a human being to make your purchase. Just swipe your card and you are on your way.
The bottom line is there is no fool-proof method to guarantee your credit card will never be used by thieves. If it makes you feel all warm and fuzzy inside, why not sign the back of the card and write ‘See ID’ as well? It may prevent a thief from using your card to make an in-store purchase, which will save you the time and effort it takes to dispute the fraudulent charges and protect your credit score. In addition, be sure to check your credit card account online often and utilize an identity theft prevention service, such as LifeLock, for added protection. You may not be able to guarantee that a thief will never use your credit card, but the sooner you know about it, the better.
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Author: Joshua Heckathorn, Date posted: September 17th, 2008
Category: Credit Cards, Credit myths
I’ve been hearing a lot about ‘credit-scoring myths’ these days from our followers at Creditnet.com . You know, the quick and easy ways to add points to your credit score in a short period of time. Usually they are the same ones that have been circulating for years. Close credit card accounts you don’t use, increase your income and your credit score will increase, or just use cash to pay for everything and your credit will be perfect. I hope you haven’t fallen for any of these. If you have, I’m happy you are taking the time to visit this site and educate yourself about credit. Definitely a step in the right direction.
Many of these myths probably began when some ingenious word of mouth marketing campaign was put in place by a highly-paid marketing professional on behalf of a credit card company. My personal favorite is when people actually try to convince me that leaving a monthly balance on their credit cards will make them look like a better credit risk and build their credit score faster. I have now idea why this one is so easy for people to believe. It just doesn’t make sense.
Remember, more monthly balances simply equal more interest income for credit card issuers. Aggregate that additional income from millions of people who believe the rumor, and we are talking about a lot of cash. The truth is the speed at which you establish credit has absolutely nothing to do with whether you carry a monthly balance or not. The things that really matter have basically never changed. Pay your bills on time, manage your credit utilization, pay down debt, correct errors on credit reports, and apply for new credit sparingly.
Do you have any favorite ‘credit myths’ you’ve heard from friends and relatives? If so, we would love to hear about them.
Author: Joshua Heckathorn, Date posted: August 25th, 2008
Category: Credit Scores, Credit myths
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